The AGEM Index, which tracks the performance of major publicly traded gaming equipment suppliers worldwide, fell by 6.1% in September to 1,811.01 points. This marks the index's first monthly drop since March 2026, reflecting broader declines in stock prices across the sector.
Key Contributors to the Decline
Among the nine companies included in the AGEM Index, Aristocrat Leisure Limited and Light & Wonder Inc. had the most significant negative impacts. Aristocrat's share price slipped by 2.3% during September, reducing the index by 46.60 points. Light & Wonder experienced a sharper fall of 16.8%, subtracting 39.12 points. The decrease in Light & Wonder's share price followed the announcement that the CEO of SciPlay, its social-casino division, would step down at the end of October.
Industry-Wide Weakness
The AGEM Index's total loss for the month was 118.24 points. On a year-over-year basis, the index is down 114.20 points, or 5.9%. Eight out of the nine companies tracked by the index saw share price declines in September, resulting in nine negative contributions and no positive ones. The downturn occurred alongside mixed results in major U.S. equity markets, with the Dow Jones Industrial Average dropping 4.3%, the S&P 500 down 0.5%, and the Nasdaq gaining 1.9% during the same period.
Implications for Industry Stakeholders
The September decline signals increased volatility for gaming equipment suppliers and may prompt operators, affiliates, and suppliers to reassess market conditions and business strategies. The lack of positive contributions among index constituents highlights widespread pressures, potentially influencing investment decisions and partnership strategies within the sector. For regulators, ongoing monitoring of supplier performance remains important as market conditions shift.
About the AGEM Index
The AGEM Index is compiled monthly by the Association of Gaming Equipment Manufacturers. It covers five U.S.-based gaming suppliers listed on major U.S. exchanges, three companies trading on the Australian stock exchange, and one listed in Tokyo. The index is calculated using each company's month-end share price, adjusted for dividends and stock splits, and is weighted by approximate market capitalization. For non-U.S. companies, market capitalizations are converted to U.S. dollars for comparison.
Key takeaways
- The AGEM Index fell 6.1% in September, its first decline since March 2026.
- Aristocrat and Light & Wonder contributed most to the drop, both seeing share price decreases.
- Eight of nine tracked companies posted share price declines during the month.
- The downturn reflects broader market volatility and may affect industry strategies.